Not to mention that DISH makes far too much money off of DISH TV and Charles Ergen has no intention to sell his company. The company is publicly traded, but he still owns the vast majority of the shares especially when it comes to voting stock. DISH made $785 million dollars from DISH TV last quarter (satellite and streaming) but their overall profit was $523 million. Sell to some company that would aggregate DISH TV and DIRECTV? Naw.
DISH buying DIRECTV to fulfill the merger prophecy? There is no need. DISH doesn't need the additional debt and as just noted, they are doing fine. DISH doesn't need to bail out DIRECTV to survive. They can buy what is left of the company eventually but there is no pressure.
They didn't "choose" so much as market changes (i.e. cord cutting and subscriber losses) meant it would not be worth spending what the NFL wanted for a renewal.DIRECTV chose to not be the exclusive carrier. They may be able to work out a deal with the new exclusive carrier but it doesn't seem all that worth the effort for most.
The only indication that DIRECTV is trying to work a deal is the comment from Roger Goodell. I see no "demonstration" (though that doesn't mean that something isn't in the works).I think the Thursday night thing demonstrates their desire and ability to work out a deal for NFLST for commercial accounts.
Let's not forget that DIRECTV came with several billion in debt. It may take quite a few quarters to work that debt off.They were still making almost $1 billion a quarter in free cash flow when Directv spun them off and their results were no longer publicly reported, so Directv doesn't need a "bail out" from Ergen or anyone else.
DISH's published figures give people hope that DIRECTV is still profitable.It isn't as though Directv is losing money.
Commercial subscriptions are included in the subscriber counts ... not as a direct number but as an equivalent number of residential subscribers. DISH has one asset that DIRECTV has never been able to maintain. A dedicated owner who isn't looking to flip the company and monetize assets. TPG will eventually bail out of their investment in DIRECTV ... it may not be to DISH but they will sell. Because that is what they do.They might still be OK even at 2 or 3 million subscribers. Perhaps less for Directv than Dish, since they have all the bar/restaurant accounts assuming they can sublicense NFLST, they have only one satellite fleet to maintain rather than two, and all the satellites they need through 2030 or longer are already in place which is not the case for Dish.
DISH's published figures give people hope that DIRECTV is still profitable.
Given that the DBS ARPU was upwards of $1,800 per year, it doesn't take long to lay waste to $4 billion when spread across "a few million" lost customers ($4 billion in revenue = 2,222,222 subscribers). At the projected rate, DIRECTV could easily be at break even by next Spring.You don't think losing a few million subscribers will cause them to go from making $4 billion a year to losing money, do you?
Given that the DBS ARPU was upwards of $1,800 per year, it doesn't take long to lay waste to $4 billion when spread across "a few million" lost customers ($4 billion in revenue = 2,222,222 subscribers). At the projected rate, DIRECTV could easily be at break even by next Spring.
Calm down. Take a breath. I was thinking of the people who were thinking AT&T was hiding their profitability because satellite itself somehow stopped being a profitable service. DISH proves that satellite is still profitable and that proof extends to DIRECTV. I am not claiming that DIRECTV is not profitable.No, AT&T's published figures from the last time they did prior to the sale give people CERTAINTY that Directv is still profitable. You don't think losing a few million subscribers will cause them to go from making $4 billion a year to losing money, do you?
What year and company are you basing that claim on? The math is flawed since ARPU is average revenue per user, not average profit per user. AT&T|DIRECTV's profit was closer to $20 per month, $240 per year or only a $360 million loss for 1.5 million lost customers. And that is assuming they didn't find a way to make more money on less subscribers by cutting costs.Given that the DBS ARPU was upwards of $1,800 per year,